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BofA downgrades Ibotta to Underperform after ‘big miss’

As previously reported, BofA downgraded Ibotta (IBTA) to Underperform from Neutral with a price target of $24, down from $57. Ibotta reported “significantly weaker-than-expected” Q2 results and Q3 revenue guidance due to the decision by two clients testing the company’s new performance marketing model to pause spend in the program as well as tough industry conditions constraining promotional supply, the analyst tells investors. Visibility on the transition to a performance marketing model being “transformative,” as the company says it will be, is “highly uncertain,” the analyst added.

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